A quantum leap in economic governance - but questions remain

EU leaders put the final pieces of the new, enhanced economic governance puzzle in place at their 24-25 March Summit, agreeing key elements of the ‘grand bargain’ which includes treaty change, the permanent bail-out mechanism, the ‘Euro Plus Pact’, the ‘six pack’ of legislative procedures, the European semester, and a second round of bank stress tests. But this EPC analysis by Janis A. Emmanouilidis argues that while European Council President Herman Van Rompuy was right to herald this as a “turning point in the management of the crisis”, several key questions remain unanswered. It also assesses the outcome of the Summit discussions on developments in Libya and the aftermath of the Japanese earthquake and tsunami.

Read the full paper here